SIE Mastery Exam 3 Review Questions With Verified And Updated Solutions.

SIE Mastery Exam 3 Review Questions With Verified And Updated Solutions. Which of the following securities is NOT exempt from the Securities Act of 1933? A. Municipal revenue bond issues B. Common carrier issues C. Income bond issues D. U.S. Government bond issues - answerC. Income bond issues Which of the following activities is allowed prior to the filing of the registration statement? A. Sending a customer a "red herring" preliminary prospectus B. Accepting an indication of interest from the customer after sending the red herring C. Accepting a deposit to buy the security from the customer D. None of the above - answerD. None of the above When the Securities and Exchange Commission sets the effective date for a new issue in registration, this means that the: A. SEC has approved the offering for sale to the public B. SEC has certified that the offering documents give full and fair disclosure C. proper documents for registration have been filed with the SEC D. effective cost to potential purchasers has been established by the SEC - answerC. proper documents for registration have been filed with the SEC If the Securities and Exchange Commission sets the effective date for a new issue in registration, which statement is FALSE? A. All proper documents have been filed with the SEC B. The SEC approves of the new issue C. The issue may be priced D. The issue may be offered to the public - answerB. The SEC approves of the new issue Which of the following best describes a tombstone announcement? A. It is an advertisement that is used to solicit the public to buy a new registered securities offering B. It is the document that is sent to prospective investors to give them information about the new securities offering C. It is the disclosure document that gives the purchaser the most complete information about a new securities offering D. It is an announcement of a new issue offering that is being registered with the SEC - answerD. It is an announcement of a new issue offering that is being registered with the SEC Which statement is FALSE about Rule 147? A. Both the issuer and all purchasers must be state residents B. Resale to state residents is permitted immediately C. The rule exempts intrastate issues from "blue sky" registration D. The rule exempts intrastate issues from federal registration - answerC. The rule exempts intrastate issues from "blue sky" registration To claim a private placement exemption: A. a registration statement must be filed with the SEC B. a Form D must be filed with the SEC C. a Form 144 must be filed with the SEC D. no filing is required with the SEC - answerB. a Form D must be filed with the SEC To offer a private placement, which statement is TRUE? A. A registration statement must be filed with FINRA prior to sale B. A registration statement must be filed with the SEC prior to sale C. A registration statement must be approved by the principal of the firm prior to sale D. The offering is exempt, so no registration is required - answerD. The offering is exempt, so no registration is required An officer of an issuer has received restricted stock as part of her compensation package. If she wishes to sell some of the stock under Rule 144, which statement is TRUE? A. The officer can sell the stock immediately without restriction B. The officer can sell the stock within 90 days of purchase C. The officer can sell the stock within 6 months of purchase D. The officer can sell the stock within 90 days and 6 months of purchase - answerD. The officer can sell the stock within 90 days and 6 months of purchase The President of PDQ Corporation donates restricted PDQ shares to the United Way after holding them for 3 years fully paid. United Way can sell the stock without restriction: A. immediately B. after holding the securities for 90 days C. after holding the securities for 2 years D. after holding the securities for 3 years - answerA. immediately An investor owns 20% of the outstanding shares of ABC Corporation, a publicly traded company. The investor's spouse owns 5% of that company's stock. If the spouse wishes to sell her holding, all of the following statements are true EXCEPT: A. The spouse is considered to be an affiliated person subject to Rule 144 B. A Form 144 must be filed if the shares are to be sold C. Solely from the standpoint of percentage of shares outstanding, a maximum of 1% of the company's shares can be sold at this time D. Up to 6 sales per year are allowed - answerD. Up to 6 sales per year are allowed The Securities Exchange Act of 1934 regulates which of the following markets?